On April 22 the Belgian Chamber of Representatives approved a draft law to boost employment. It includes freezing wage indexation until the reference index reaches 2% and will include only very small salary rises in 2015 and 2016. The government has argued for reforms to restore Belgium’s economic competiveness vis-à-vis its neighbours. Despite their best efforts the unions have not managed to halt the government’s initiative. The FGTB intends to continue protesting, specifically with a general strike set for May. The other unions appear to be holding off from more action for the moment.
The government has voted in a freeze in the index and will only allow a very low maximum ceiling margin. This means that the next automatic inflation rate indexation of salaries and social benefit payments will only kick in when the reference index reaches 2%. Employers who choose to compensate staff for the freeze may well be sanctioned, something that annoys the unions. Since 1996 the principle of freezing wage indexation has been part of the law but provisions to apply the principle were never put in place.
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